US stocks trade mixed as investors assess progress on debt ceiling talks

• US stocks were mixed on Monday as traders digested the latest debt ceiling news.
• Treasury Secretary Janet Yellen said she sees progress being made.

US stocks were mixed on Monday as markets assessed reports suggesting some movement is being made in Washington on bridging the political gap needed to raise the $31 trillion debt ceiling and prevent the country from slamming into a debt default.

The S&P 500 was hoping to notch its first gain after two losing sessions and following two back-to-back weekly declines.

The Biden administration and Republican lawmakers are making progress in their negotiations over spending and raising the debt limit and the talks could lead to a deal, Treasury Secretary Janet Yellen said Saturday, according to The Wall Street Journal. Yellen has warned of major damage to the economy if the US were to miss meeting its debt obligations.

Meanwhile, unnamed sources told The Financial Times that issues in focus between negotiators had narrowed, suggesting a possible agreement was taking shape. Biden is expected to resume talks over the debt limit on Tuesday, according to multiple reports.

Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Monday:

• S&P 500: 4,124.14, up 0.01%

• Dow Jones Industrial Average: 33,220.22, down 0.24% (80.40 points)

• Nasdaq Composite: 12,309.00, up 0.20%

"Over the short-term, the stock market is stuck until we reach a debt ceiling resolution and until we see more clarity from the regional banking sector, which are the two factors weighing on stocks right now. Markets are anxious for a debt ceiling solution and the markets are also hoping that the Fed pauses its rate hikes at the June meeting.

"We expect volatility as we move closer to the June 1 debt ceiling deadline and while we expect a deal to be reached at the 11th hour, we view any near-term pullbacks as buying opportunities," Brad Bernstein, managing director at UBS Wealth Management, said in a Monday note.

"Even with the headwinds facing the markets and the economy, we are closer to the beginning of the next bull market. We expect the Fed to cut interest rates by early next year, which historically has been a reliable indicator for the start of a bull market," he said.

Here's what else is happening today:

• George Soros fund dumped its entire Tesla stake in the first quarter - cashing out on the EV's maker's 2023 rebound.
• Ray Dalio's Bridgewater fund ditched GameStop and AMC last quarter - while Jim Simons' RenTech bet on Tesla and Bed Bath & Beyond.
• Taylor Swift showed her financial savvy when she avoided a FTX deal, an elite investor says.
• Tech stocks aren't immune to economic pain - and could be the next domino to fall, Morgan Stanley advisor says.

In commodities, bonds, and crypto:

• West Texas Intermediate crude rose 0.8% to $70.61 per barrel. Brent crude, the international benchmark, gained 0.8% to $74.65.
• Gold slipped 0.1% to $2,017 per ounce.
• The 10-year Treasury yield gained 1 basis point to 3.472%.
• Bitcoin rose 1.6% to $27,376.10.